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Government of Rajasthan: Feedback on Draft Rajasthan Virtual Online Sports (Regulation) Bill, 2022
Government of Rajasthan: Feedback on Draft Rajasthan Virtual Online Sports (Regulation) Bill, 2022

May 31, 2022

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The Government of Rajasthan had released draft of the Rajasthan Virtual Online Sports (Regulation) Bill, 2022 for stakeholder consultation. We submitted our feedback to the Government of Rajasthan in response to this consultation. In our submission, we noted the following:

  • Given the growth potential of online gaming industries in India, we have seen emergence of global gaming companies setting up offices in India. However, over last few years, the regulatory uncertainty around the online gaming industry has overshadowed the growth of the industry.[1]
  • Consider the cross-territorial nature of online gaming, a uniform central framework may be better suited to govern online gaming than a state-wise framework. Through this central framework, inter-state coordination can be ensured as well.
  • The Constitution of India empowers the state to legislate on ‘betting and gambling’.[2] As has been held in State of Bombay vs RMD Chamarbaugwala[3], that games of skill are a protected activity under Article 19(1)(g) of the Constitution of India. This essentially means that while states are only empowered to ban games related to betting and gambling.[4] However, this does not prohibit regulation of skill-based gaming under ‘entertainment and amusements’[5] item or ‘trade and commerce’[6] in List II and List III respectively, by states.
  • The Central Government, also has the power to regulate skill-based games under entry 31 and entry 42 i.e., “posts and telegraphs; telephones, wireless, broadcasting and other like forms of communication”, and “inter-state trade and commerce” of List I. Since these games are offered and player over media covered under Entry 31 of List I, the Parliament has legislative competence to enact a law dealing the same. Alternatively, the Parliament can consider resolution under Article 252 or Article 249 to regulate the same.

 

Broadly, we suggested that –

  • The Government should emphasise on centre-state coordinated action on gaming, and that the Government of Rajasthan may consider collaborating with the central government’s task force on gaming to put forth its specific concerns and suggestions vis-à-vis online gaming, instead of legislating a law regulating online gaming.
  • The central framework on regulation of online gaming should include – mechanism to assuage concerns related to unlawful apps and websites; have extra-territorial effect; provide clarity and uniformity in meaning, definition and scope of games of skill and chance; have age-rating of games; and provide clarity on KYC processes, taxation processes etc.

You can find our detailed attachment below. For more information, kindly write to apurva@nasscom.in.

 

[1] See, Alpha Partners, Madras High Court Strikes Down Tamil Nadu Amendment Law Banning Online Games with Stakes (2021), available at https://www.mondaq.com/india/gaming/1145090/madras-high-court-strikes-down-tamil-nadu-amendment-law-banning-online-games-with-stakes. Also see, R Balasubramanyam, Karnataka moves SC challenging HC judgment, seeks restoration of ban on online games (2022), Economic Times, available at https://economictimes.indiatimes.com/news/india/karnataka-moves-sc-challenging-hc-judgment-seeks-restoration-of-ban-on-online-games/articleshow/90533285.cms; Also see, Gopal Jain, Gaming industry: India needs rational regulations to become global leader (2022), Financial Express, available at https://www.financialexpress.com/opinion/gaming-industry-india-needs-rational-regulations-to-become-global-leader/2504403/.

[2] See, Entry 34, List II, Constitution of India.

[3] See, State of Bombay vs RMD Chamarbaugwala, AIR 1957 SCC 699.

[4] See, Tanisha Khanna, Aarushi Jain & Gowree Gokhale, The time for a central law for India’s online gaming industry is now (2022), Nishith Desai & Associates, available at https://www.nishithdesai.com/NewsDetails/5394.

[5] See, Entry 33, List II, Constitution of India.

[6] See, Entry 33, List III, Constitution of India.


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NASSCOM_RajasthanGamingLaw_VI_26052022.pdf

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Apurva Singh
Senior Policy Associate

Write to me for all things related to FinTech, Drones, Data and Gaming

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